Cryptocurrency analysis firm Alphractal has published a compelling analysis of the Bitcoin market.
The analysis suggests that Short-Term Investors (STIs) have recently begun accumulating Bitcoin non-strategically and at relatively high levels.
According to the company’s data, the Realized Price for short-term investors has now exceeded $107,000. This group of investors, who have been accumulating Bitcoin since 2022, is facing a much more complex situation this cycle compared to previous periods. Alphractal explained that investors are buying at higher prices, thus widening their margin of loss.
The analysis warned that a drop below $107,000 could trigger new market pessimism. Alphractal noted that many exchanges have large liquidation pools below this level. Highly leveraged long positions, in particular, would be more vulnerable to this risk.
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The company described the recent $124,000 move as a “classic bull trap,” noting that it was market makers hunting for liquidity. According to the analysis, investors who opened long positions are increasingly feeling the pressure.
“A drop below $107,000 could trigger widespread fear and negativity. However, historically, these conditions have also brought about the most opportune times for strategic accumulation,” Alphractal said.
This is not investment advice.